Opportunity day 26 March 2019

Transcription

1 2018 YEAR-ENDED RESULTS Opportunity day 26 March 2019

2 DISCLAIMER The information contained in this material has been prepared by Singha Estate Public Company Limited ( S or Singha Estate ) solely for information purpose and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for shares in Singha Estate. Some statements made in this material are forward looking statements. These statements typically contain words such as "expects" and "anticipates" and words of similar import. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves various risks and uncertainties. These include statements with respect to our corporate plans, strategies, and beliefs. The statements are based on our management s assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward looking statements. None of the future projections, expectations, estimates or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the presentation. We assume no obligations to update the forwardlooking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of Singha Estate or any of its shareholders, directors, officers or employees or any of the Banks (and their shareholders, directors, officers or employees) or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of Singha Estate nor any of its shareholders, directors, officers or employees accepts any liability (in negligence or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. Individual situations and local practices and standards may vary, so viewers and others utilizing information contained within a presentation are free to adopt differing standards and approaches as they see fit. Products and names mentioned in materials or presentations are the property of their respective owners and the mention of them does not constitute an endorsement by Singha Estate. The information contained in this presentation is only current as of the date its date. In giving this presentation, neither Singha Estate nor its respective advisers and/or agents undertake any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. You must make your own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as you may consider necessary or appropriate for such purpose. The presentation should not be construed as legal, tax, investment or other advice.

3 AGENDA S OVERVIEW KEY BUSINESS SEGMENT Commercial Business Residential Business Hospitality Business Development properties and new project FINANCIAL PERFORMANCE

4 S Overview 4

5 S KEY MILESTONES Strong growth in assets and revenues through the smart acquisitions With an ambition to be a market leader across its key real estate sectors, S has continuously expanded through acquisition of income-generating assets, investments and partnerships Incorporation of Singha Estate Invested 51% in Nirvana Development JV Invested in 26 hotels in UK (2,883 keys) JV with Hongkong Land to develop ESSE36 Invested in phase 1 of Crossroads in Maldives Filing of SPRIME - Suntowers Acquired Phi Phi Island Village Beach Resort (156 keys) Acquired Suntowers (~61,000 sq.m. NLA) JV invested in 3 additional hotels in UK (229 keys) Invested 52% in Nirvana Daii PCL Invested in 6 Outrigger hotels (859 keys) JV with Daiwa to develop EYSE43 Total assets (Bt.mn) Total revenue (Bt.mn) 11,288 25,308 30,592 40,910 58, ,149 3,233 5,858 7,

6 2019 : The Harvesting Year of Singha Estate Strong Revenue Stream in 2019 New Projects in 2019 Transfer 3 Condominiums & 1 Residential Project Full year Revenue from Singha Complex Launch new luxury condominium Begin construction new office building Open CROSSROADS at Maldives : in 2019 Full year Revenue from 6 Outrigger Hotels SAii Lagoon Maldives, Curio Collection by Hilton Hard Rock Hotel Maldives Implement uplift projects in Outrigger Hotels OUTRIGGER Laguna Phuket OUTRIGGER Fiji Beach THE CROSSROADS Outrigger Fiji Beach Resort Castaway Island OUTRIGGER Koh Samui Fiji Castaway Island OUTRIGGER Konotta Maldives OUTRIGGER Mauritius Outrigger Laguna Phuket Beach Resort 6

7 Key Business Segments 7

8 KEY BUSINESS SEGMENTS Moving toward the premier lifestyle developer S s business currently spans across 3 major sectors of property business: Hospitality Residential Commercial 34% 22% 44% 53% 34% 9% 8

9 Hospitality Portfolio : 37 hotels in 5 countries 4,271 keys (not included CROSSROADS 2 hotels 376 keys) 29 hotels in UK Jupiter Hotels 26 hotels No. of keys: 2,886 The Hotelier Group 3 hotels No. of keys: % 100% Santiburi Koh Samui No. of keys: 96 Phi Phi Island Village Beach Resort No. of keys: % OUTRIGGER Konotta Maldives No. of keys: % OUTRIGGER Laguna Phuket No. of keys: 255 OUTRIGGER Koh Samui No. of keys: 52 SAii Lagoon Maldives, Curio Collection by Hilton No. of keys: % 100% OUTRIGGER Fiji Beach No. of keys: 253 HARD ROCK HOTEL MALDIVES No. of keys:178 Total No. of keys % OUTRIGGER Mauritius No. of keys: 181 Fiji Castaway Island No. of keys: % owned and managed JV Outrigger hotels 9

10 Residential Portfolio Bangkok 5 projects; Value Bt 23,031mn Santiburi The Residences Project value: Bt.5,500mn Launch: Q % Own The ESSE Asoke Project value: Bt.4,900mn Transfer 1 : Q % Own The ESSE at Singha Complex Project value: Bt.4,300mn Transfer 1 : Q Nirvana Daii PCL : 52% Own No. of projects: 15 Remaining project value: Bt.13,476mn Total value Bt. 18,485mn 100% Own 51% Own EYSE Sukhumvit 43 2 Project value: Bt.1,931mn Transfer 1 : Q % Own The ESSE Sukhumvit 36 2 Project value: Bt.6,400mn Transfer 1 : Q Banyan Tree Residenses Project value: Bt. 6,575 mn Note: 1. Company estimates and subject to change 2. Investment in JV structure (51% economic interest) 10

11 Commercial Portfolio : NLA 176,507 sq.m. Suntowers NLA: 61,132 sq.m. Singha Complex NLA: 58,174 sq.m. The Lighthouse NLA: 3,201 sq.m. Oasis NLA : ~54,000 sq.m. Target open :

12 Residential Business 12

13 Residential Business : condominium Start transferring of the ESSE Asoke The first S luxury condominium project The ESSE Asoke The ESSE at Singha Complex The ESSE Sukhumvit 36 EYSE Sukhumvit storeys 419 units Project value Bt.4,900mn Approx. Bt.218,000 /sq.m Sales progress 82% Transfer progress 29%(of units sold) *Relaunched in Q storeys 319 units Project value Bt.4,347mn Approx. Bt.266,000 /sq.m Sales progress 92% Transfer Q % construction progress 43 storeys 338 units Project value Bt.6,485mn Approx. Bt.336,000 /sq.m. Sales progress 62% Transfer Q (tentative) 10% construction progress *JV with Hongkong Land 7 storeys 107 units Project value Bt.2,063mn Approx. Bt.239,000 /sq.m Sales progress 45% Transfer Q (tentative) EIA in process *JV with Daiwa House Group 13

14 Residential Business : Single-detached house Santiburi The Residences Ultra-luxury single-detached house Project value Approx. Bt.5,500mn 26 units Sales progress 12% (3 units) Construction progress : 100% for clubhouse, villa 1, villa 2, landscape, infrastructure, 67% for Villa 12 14

15 Commercial Business 15

16 Commercial Business Suntowers Singha Complex Location : Asoke Phetchaburi Grand opening date : 12 December 2018 Anchor tenants: S, SAM, Ericsson, Fuji Xerox, Technip, Symphony, Toyota Leasing Anchor tenants: Boonrawd, Shopee, Unicharm Key stats FY 2017 FY 2018 Q4'17 Q3 18 Q4'18 Total (sq.m) Closed Deal sq.m % Net leasable area 1 (sq.m) 61,383 61,165 61,304 61,132 61,159 Occupancy rate (%) 96% 94% 95% 93% 92% Office 52,982 42,727 85% 2 Retail 4,317 3,847 89% Rent rate (Baht/sq.m./month) Rental growth (yoy%) +7% +3% +5% +4% +5% Note: 1. NLA includes office and retail space Note 2 Including BRB office 16

17 Hospitality Business 17

18 Hospitality Business : 100% owned and managed Santiburi Koh Samui Phi Phi Island Village Beach Resort 5-star beachfront resort 19 exclusive modern-style pool villas were completed in May 2018 (a total room of 96 keys) 4-star luxury beach resort Performance was affected from the Phuket boat incident in July Key stats Q17 3Q18 4Q18 No. of rooms Occupancy rate 71% 61% 54% 64% 45% RevPar (Baht) 9,133 7,933 6,816 8,329 4,975 RevPar growth (yoy%) (3%) (11%) (14%) (9%) (15%) Key stats Q17 3Q18 4Q18 No. of rooms Occupancy rate 85% 83% 81% 77% 84% RevPar (Baht) 5,650 5,743 8,327 3,659 6,123 RevPar growth (yoy%) 5% 2% 6% (7%) (6%) 18

19 Hospitality Business : 100% owned; managed under HMA 6 Outrigger-branded hotels Fiji Thailand Outrigger Fiji Beach Resort Outrigger Koh Samui Beach Resort Key stats 3Q18 4Q18 No. of hotels 6 6 No. of rooms Acquired 6 hotels in 4 countries in Jun 18 Diversified location with different peak season Quarter 4, Phuket, Maldives and Mauritius were under peak season period. Occupancy rate (%) 81% 82% Maldives Castaway Island Outrigger Laguna Phuket Beach Resort Mauritius July Dec 18 performance specific to each hotel Fiji Beach Castaway Phuket Samui Mauritius Maldives No. of rooms Outrigger Konotta Maldives Resort Outrigger Mauritius Beach Resort Occupancy rate(%) 85% 89% 75% 77% 88% 68% RevPar (THB) 4,443 12,847 3,317 3,541 4,898 8,505 *HMA=Hotel Management Agreement 19

20 Hospitality Business : 50% owned 29 Hotel Investment in UK Manchester From a total of 29 hotels with 3,115 keys in hotel investment in UK through 50:50 joint venture structure Overall occupancy rate and operating profit is quite steady. Key stats Q17 3Q18 4Q18 Brighton No. of rooms 3,112 3,115 3,112 3,115 3,115 Occupancy rate 72% 71% 69% 79% 69% RevPar (GBP) RevPar growth (yoy%) 5% 0% 4% (1%) (1%) Leicester 20

21 Development and upcoming project 21

22 22

23 CROSSROADS Project The first integrated tourist facilities in Maldives Island I (1a) The Marina Site Area : 17 Ha Facilities : restaurant, Café de Mar, Hard Rock Café, cultural center, multipurpose hall, marina center Island I (1b) SAii Lagoon Maldives, Curio Collection by Hilton Site Area : 4.4 Ha Keys : 198 Island 2 - Hard Rock Hotel Maldives Site Area : 6 Ha Keys :

24 Progress Updates Hotel SAii Lagoon Maldives, Curio Collection by Hilton HARD ROCK HOTEL 24

25 Progress Updates Villas SAii Lagoon Maldives - Water Villa Hard Rock - Water Villa SAii Lagoon Maldives - Beach Villa Hard Rock Reception area and Pier 25

26 Progress Updates Marina Unit 01: Terrace Civil work Link Bridge between Marina and Hard Rock Hotel Toilet 2 + Clinic : Roof structure + primer + internal wall Kid Club - Structure work (By Alia) 26

27 Financial Performance 27

28 S 2018 revenue : driven by residential and hospitality business 2% 2% 34% 9% Total Revenue 7,539 MB 53% 2018 Revenues Residential Hotel Commercial Construction materials Others 2018 residential revenue increased 66% YoY resulting from the ESSE Asoke. Hospitality business growth was supported by revenue from Outrigger portfolio 6 hotels. Commercial revenue decreased by 68% YoY resulted from Q4 17 the company recognized one-time revenue for upfront lease at Singha complex. Residential 66% 3,974 Hotel Commercial 2, , % 2, ,114 (68%)

29 Key Financial Performance CONSOLIDATED FINANCIAL HIGHLIGHTS (Unit: THB Million) FY2017 FY2018 % YoY Revenues 5,858 7,539 29% Gross profit 2,434 3,249 33% EBIT 1,228 2,016 64% Profit (loss) for the period before NCI 631 1, % Non-controlling interests (59) (149) 152% Net profit (loss) after NCI 572 1, % EBITDA 1,485 2,524 70% Key driver for growth in 2018: Transfer ownership the ESSE Asoke Acquire 6 Outrigger hotels Transfer ownership Banyan Tree Residences Non-operating items referred to : Gain on exchange rate Gain from fair value adjustment on investment properties Professional fees, land transfer fees, etc. Sales & marketing of residential projects Performance without non-operating items Normalized EBITDA 754 1, % Normalized Profit for the period after NCI ,983% 29

30 Key Expenses 2018 Selling Expense 981 In 2018, selling expenses was 981 million baht, increased by 79% YoY, because of an increase of advertising expense of residential and hospitality business Administrative expenses , ,006 Administrative expenses in 2018 was 1,599 million baht increased by 59% YoY mainly due to higher personnel expenses reflecting increased number of employees and administration of the Outrigger hotel portfolio Finance costs In 2018, the Company incurred 662 million baht of finance costs, increased by 79% YoY, reflected an increasing in long-term loan and acquisition loan for Outrigger hotels. 30

31 Financial Position : Asset 12% 7% 2018 Total Assets Cash and cash equivalent 20,000 15,000 Asset Balance 23% 25% Inventories Other current asset 10,000 5,000 4% Net PPE 0 29% Investment asset Other non current asset Cash and cash equivalent Inventories Net PPE Investment asset As at 31 December 2018, the total assets were 58,930 million Baht, increased by 44% from last year. The incremental assets mainly came from Outrigger hotels and Crossroads Project Phase I, inventories and cost of property development and development of Singha Complex. 31

32 Financial Position : Capital Structure Debt ratio 4% 13% 2018 Total Liabilities % 3% Payable Short-term debt Other current liabilities % Long-term debt Other non current liabilities IBD/E Net D/E IBD/E Total liabilities were 38,837 million Baht, increased by 78% from last year, the debt financing is essential to support new project development and acquisitions. Thus, interest-bearing debts to equity from 0.85x to 1.53x as well as net interest-bearing debts to equity from 0.41x to 1.33x. However, the company is still relatively over leverage with the plan to rebalance the capital structure. 32

33 Investor Relations Tel : (+66) Website :

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